Why Esports World Cup Sponsors Aren’t in it for the ViewershipTable of ContentsIntroductionThe Allure of the Esports World CupWhy Brands are Betting on Esports SponsorshipsUnpacking the Multi-faceted Benefits of SponsorshipConclusionFAQ SectionIntroductionPicture this: The inaugural Esports World Cup kicks off on July 3, 2023, in Riyadh, Saudi Arabia, boasting an unprecedented $60 million prize pool. The event attracts gamers and dealers of the digital realm, offering a stage to showcase talents in top-tier games like League of Legends and Counter-Strike. However, to the casual observer, the standout feature isn’t the eye-popping prize money or the elite competition. Rather, it’s the commitment of sponsors like PepsiCo and Mastercard, who see beyond viewership numbers to uncover deeper, lasting benefits from their involvement. This article delves into why these corporate giants are investing in esports sponsorships and what they aim to achieve beyond sheer visibility.The Allure of the Esports World CupScope and PopularityIn recent years, the esports industry has grown exponentially, reaching diverse audiences worldwide. Events like the Esports World Cup draw in millions of fans, both virtually and on-ground, creating lucrative opportunities for brands to engage with an intensely passionate demographic.The Esports World Cup, which started its first season in 2023, has surpassed its predecessor Gamers8’s average viewership by nearly 8%. Despite the remarkable increase, it's still argued whether the viewership lives up to the hyped expectations. However, the key metric for brands like Mastercard and PepsiCo is not just about how many people tune in but how deeply they can connect with the community.Why Brands are Betting on Esports SponsorshipsLong-Term Vision Over Immediate ReturnsFor many brands, immediate viewership numbers might not be as crucial as the long-term benefits that stem from robust engagement with a devoted fan base. Karim El Fiqi, SVP and CMO of PepsiCo AMESA, emphasized the importance of creating long-lasting equity within the esports community. According to him, fostering genuine relationships with gamers and capturing the on-ground engagement are vital components of a successful sponsorship strategy. Simply put, while viewership is an important metric, it’s not the primary factor for pursuing sponsorships.Mastercard echoes this sentiment, highlighting their intention to embed their brand into the rapidly growing gaming market in the Middle East. By meeting consumers where they are, Mastercard aims to fortify its presence in a market that's experiencing significant growth. Strategic Geographical PositioningSaudi Arabia, the host of the Esports World Cup, is aggressively pushing its Vision 2030 initiative, which aims to diversify the economy and establish the country as a hub for gaming and esports. Brands like PepsiCo view their sponsorship of the Esports World Cup as a strategic entry point into various ongoing and future gaming projects in the region—projects like the Qiddiya gaming city and other esports leagues run by ESL/FACEIT Group.Building Relationships and Brand EquityThe significant involvement of the Saudi Arabian government in hosting and promoting the Esports World Cup adds another layer of potential benefits. These are less tangible but extraordinarily relevant to brands operating in the region. Showing support for such initiatives can improve a brand’s stature, enhancing its relationship with local authorities and facilitating smoother operations for other business ventures in the area.Malph Minns, managing director of Strive Sponsorship, mentions that, given the government’s involvement, companies are quite aware of the importance of appearing supportive of these initiatives. This could grease the wheels for other negotiations and partnerships, making esports sponsorships a cost-effective way to remain favorably positioned in the Saudi market.Unpacking the Multi-faceted Benefits of SponsorshipConsumer Engagement and LoyaltyOne of the primary aims of these sponsorships is to engage directly with the dedicated esports audience. Gaming enthusiasts are not just passive spectators; they actively participate, create content, and build communities around their favorite games and events. PepsiCo and Mastercard recognize this level of engagement as a unique opportunity to build consumer loyalty.On-ground ActivationPhysical presence at the event, through activities such as product sampling or branded experiences, allows sponsors to interact with fans on a personal level. This in-person engagement can create lasting impressions and foster deeper connections with the target audience. For instance, PepsiCo not only sells its products at the Esports World Cup but also uses the event to activate its brand in a tangible way, reinforcing its market presence.Expanding Brand HorizonsFor Mastercard, the Middle East represents a burgeoning market for gaming. Their sponsorship of the Esports World Cup enables them to connect with an expanding and increasingly influential demographic. This is not just about visibility but also about integrating into a cultural movement that has wide-reaching implications for future market growth.ConclusionWhile viewership metrics provide a snapshot of an event's immediate success, the enduring value of esports sponsorships lies in the long-term, multifaceted benefits they offer. Brands like PepsiCo and Mastercard are not just seeking eyeballs; they are cultivating relationships, enhancing market positions, and aligning with larger strategic goals, such as Saudi Arabia's Vision 2030.By sponsoring the Esports World Cup, these companies demonstrate a forward-thinking approach, recognizing that the real game-changer in esports lies beyond the screen. They are leveraging the unique, immersive experiences that these events offer to build deeper connections with a passionate and rapidly growing audience, ensuring that their investments pay dividends well into the future.FAQ SectionWhy are brands like PepsiCo and Mastercard sponsoring the Esports World Cup?These brands see the long-term engagement and the opportunity to build brand equity with the dedicated esports community. It's not just about immediate viewership but about positioning themselves strategically in a growing market.How does the involvement of the Saudi Arabian government influence sponsorship decisions?The government's involvement provides added incentive for brands to sponsor the event. Brands benefit from enhanced relationships with local authorities, which can facilitate smoother operations for their other business activities in the region.What benefits do on-ground engagements offer?On-ground engagements allow brands to interact directly with fans, creating lasting impressions and deeper connections. This form of activation can significantly enhance consumer loyalty and brand recall.How does sponsoring an esports event align with Saudi Arabia's Vision 2030?Sponsoring an esports event aligns with Vision 2030 by promoting economic diversification and establishing Saudi Arabia as a major player in the global gaming and esports market. Brands like PepsiCo see their sponsorship as supporting these broader national objectives.Is viewership still important for these sponsorships?While viewership is an important metric, it is not the primary factor driving these sponsorships. Brands are more focused on the long-term value that comes from deep engagement and positioning in the esports space.